YTB International reported a net loss from operations for the first quarter of 2009 of $1.9 million. In its first-quarter report to the Securities and Exchange Commission (SEC), YTB said that negative current economic conditions and other factors have led to a fall off in the number of active Travel Site Owners (TSOs) in YTB. Net revenues totaled $21.8 million in the first quarter of 2009 compared to $42.7 million in the first quarter of 2008.
YTB said the number of active TSOs has declined during the quarter ending March 31 by a net loss of 18,582 to 73,801 active TSOs from the 92,383 reported as of December 31, 2008. TSOs were formerly known as Referring Travel Agents (RTAs), most of whom work from their homes.
“The Company is also defending against two cases challenging the legality of its network marketing program," YTB said in its report to the SEC. "Litigation claims can be expensive and time consuming to bring and defend against and could result in settlements or damages that could significantly affect financial results.
“The Company’s loss from operations, declining active TSO count, working capital deficiency, uncertainties surrounding the Company’s pending litigation, and the general downturn in the economy raise substantial doubt about the Company’s ability to continue as a going concern,” the report continued.
YTB said it had taken action to ensure that the company will survive, including a consultant to provide recommendations to the Board on cost structure, compliance and other matters to improve overall profitability.
For more information contact:
Daryl D. Alex
Regional Executive
Traverus Travel/ Televerus Cell Phones
1-800-781-3254
1-877-744-3431
225-590-7700
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